Australian cricket star Steve Smith has made headlines off the field with the sale of his plant-based milk company, Oat Milk Goodness (OMG), for Rs 28.5 crore (approximately $3.42 million). The sale marks a significant business achievement for Smith, who co-founded the company in 2019 alongside Tony Adams and Daniel Rootes.
Strategic acquisition by Forbidden Foods
The buyer, Forbidden Foods (ASX: FFF), a well-known producer of healthy snacks, sees this acquisition as a critical move towards becoming a dominant player in the fast-moving consumer goods (FMCG) sector. The company aims to integrate OMG’s product range with its own Blue Dinosaur line of protein and healthy snack bars, creating a powerful multi-channel, health-focused business serving both domestic and international markets.
“The proposed transaction represents a unique opportunity to leverage the strengths of both companies,” said Forbidden Foods CEO Alex Aleksic. He highlighted that the merger is poised to enhance the company’s profitability by streamlining distribution channels and expanding market reach.
Steve Smith vision for growth
Steve Smith expressed his optimism about the acquisition, noting that it would serve as a “springboard” for OMG’s growth. “This agreement offers OMG access to capital markets and international expansion opportunities,” Steve Smith said, adding that the company is particularly keen on expanding into the Indian market, where his cricketing fame could drive brand recognition.
OMG, known for its oat milk products free from industrial seed oils, has already made significant inroads into the café sector and retail markets through partnerships with major chains like Woolworths and Ampol Foodary outlets. The company’s annual revenue is currently at $1.2 million, with Forbidden Foods forecasting near-term revenue growth following the acquisition.
Steve Smith set for batting reshuffle
Australian batting stalwart Steve Smith is reportedly keen on returning to his preferred number four position for the upcoming Border-Gavaskar Trophy against India. The former captain has struggled at the top of the order, with modest returns since the retirement of David Warner.
Known for his exceptional batting prowess at number four, Smith has amassed a staggering record in this position. With a batting average of 61.50 and 19 centuries, the position has been his most prolific.
A potential return to number four could see Mitch Marsh promoted to the opening slot, adding a dynamic dimension to Australia’s batting lineup. The Border-Gavaskar Trophy, scheduled to begin on November 22, is set to be a fiercely contested series, and Australia will be looking to Smith to deliver his best form.
Solid Foundation
Forbidden Foods, which has posted its best earnings performance since its ASX listing in September 2020, sees this deal as a stepping stone towards sustained profitability. The company reported a net loss before tax of $1.085 million in the first half of FY24, marking a 104 per cent improvement from the previous period.
The company’s focus remains on expanding its Blue Dinosaur range in key markets, including the Asia-Pacific region, the United States, and the Middle East. The OMG acquisition aligns with this vision, particularly with its initial offshore focus on the Indian market.
This acquisition not only underscores Steve Smith’s successful foray into the business world but also sets the stage for OMG’s expansion into new markets, capitalising on the growing global demand for health-focused products.
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